Bank of America Merrill Lynch issues pay ultimatum to IT contractors
by Alan Little
IT contractors at Bank of America Merrill Lynch (BoAML) have been told that they must accept a 10% cut to their pay rate from next week or face being laid off.
This means talented flexible workers at one of London’s biggest firms will have to agree to doing the same amount of work for much less money, with some of those affected revealing that they had not received any official corporate information explaining the cuts or rationale.
Contractors now have until 5th October to decide whether they want to accept or reject the pay cut, which makes BoAML the biggest IT contractor rate cutter in 2015. A further condition requires them to take two weeks off before 6th November.
An IT contractor at the company said the changes would equate to a real-term pay cut of up to 20% on a typical six-month contract, while another contractor said that the two weeks that are required to be taken off before the middle of next month “appears to be being dictated”.
BoAML was recently named the UK’s best employer for young, talented professionals and recent graduates. A spokesperson for the bank said the cuts were part of a routine review process that resulted in business adjustments being made.
One London-based IT contractor said he had accepted the cuts because he did not have any time to look for other work sources. He added: “This is the third rate cut I have had in financial IT in my career and I have to say the severity and the way it has been dealt with has been absolutely appalling – [it’s even] made the other two occasions look professional in comparison.”